Key Takeaways
- Another round of workforce reductions at Verizon is scheduled for Thursday announcement
- CEO Daniel Schulman aims to achieve $5 billion in operating expense reductions by year-end 2026
- BNP Paribas Exane lowered its VZ price target from $46 down to $44, keeping a neutral stance
- Shares declined 0.9% to $42.28 on Tuesday; posting 9% gains year-to-date including dividends
- Wall Street consensus rating is Hold, with an average target price of $50.28
Verizon plans to unveil additional workforce reductions this Thursday morning, based on information from an employee familiar with the matter. The telecommunications company has not disclosed the specific number of positions being eliminated.
Shares closed at $42.28 on Tuesday, representing a 0.9% decline for the session.
Verizon Communications Inc., VZ
The upcoming job cuts mark the continuation of a cost-cutting strategy implemented by CEO Daniel Schulman since assuming leadership in October 2025. Reducing operational expenses remains a central pillar of his corporate strategy.
Verizon executed its most significant workforce reduction ever in November 2025, eliminating 13,000 positions. Additional cuts occurred in May 2026. By the close of 2025, the company employed 89,900 workers.
During a January earnings conference call, Schulman outlined Verizon’s objective to achieve $5 billion in operating expense reductions throughout 2026, emphasizing that workforce reductions would account for a “substantial portion” of these savings.
During an internal employee webcast last December, Schulman spoke candidly: “If we don’t have enough money to put back into our value proposition to customers, we are going to continue to shrink.”
He further acknowledged that customer satisfaction metrics were “not great” and highlighted that the company had experienced market share erosion over the preceding five years.
Wall Street Downgrades Add Pressure
On the same Tuesday, BNP Paribas Exane reduced its price objective for VZ shares from $46 to $44, maintaining its neutral outlook. This revised target suggests approximately 4% potential upside from current levels.
The overall analyst sentiment remains lukewarm. Nine analysts maintain Buy ratings, while twelve recommend Hold positions. The average price target across analysts stands at $50.28.
Citigroup maintains the most optimistic outlook, raising its target to $55 with a Buy recommendation in March. Morgan Stanley holds an equal weight rating with a $50 price objective.
Financial Performance and Strategic Developments
The company’s latest quarterly financial report revealed earnings per share of $1.28, surpassing the analyst consensus of $1.21. However, revenue totaled $34.44 billion, falling short of the $34.82 billion forecast.
Revenue increased 2.7% compared to the prior year period. Management’s full-year 2026 EPS guidance ranges from $4.95 to $4.99.
During the first quarter, Verizon secured 55,000 net postpaid phone additions, exceeding market projections.
The company finalized its $20 billion Frontier Communications acquisition earlier this year. Certain Frontier personnel received four-year protection from involuntary termination as a condition of regulatory approval.
Verizon introduced a flat-rate “Simplicity plan” last month and has been deploying artificial intelligence technology in customer service operations to reduce expenses and enhance service quality.
Planned capital expenditures for 2026 range between $16 billion and $16.5 billion, marking a decrease from previous years.
VZ shares have gained 9% year-to-date on a total return basis, slightly underperforming the S&P 500’s 10.5% advance during the same timeframe.
The telecommunications provider is set to release its second-quarter financial results on July 24.
